On May 1, cruise line operator Royal Caribbean
- Total sales grew 6.7%. Management cited seasonality and weak Caribbean demand in explaining the anemic growth.
- Reported net yields fell 4.2%. Net yields are similar to same-store sales and for the company represent "cruise revenues earned by us net of our most significant variable costs."
- Diluted earnings fell to $0.04 as higher expenses also hit the bottom line.
- Management expects a flat to 2% net yield increase for 2007 and earnings of $3.05-$3.20 per share. It's calling for second-quarter earnings of $0.59-$0.63 and has a way to go to meet full-year guidance.
- Royal Caribbean has a three-star rating in Motley Fool CAPS, ahead of rival Carnival Cruises
(NYSE:CCL) (NYSE:CUK) at two stars. Cruise spa operator Steiner Leisure(NASDAQ:STNR) carries the highest five-star rating while Walt Disney(NYSE:DIS) runs a couple of cruise ships and sports a four-star rating.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|---|
|
Sales |
$1,180,000 |
$1,223,126 |
$1,146,536 |
6.7% |
|
Net Profit |
-- |
$8,825 |
$119,499 |
(92.6%) |
|
EPS |
$0.06 |
$0.04 |
$0.55 |
(92.7%) |
|
Diluted Shares |
214,005 |
230,695 |
(7.2%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Operating Margin |
6.51% |
12.30% |
(5.79) |
|
Net Margin |
0.72% |
10.42% |
(9.70) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$199,616 |
$271,977 |
(26.6%) |
|
Accounts Rec. |
$207,020 |
$82,259 |
151.7% |
|
Inventory |
$80,781 |
$59,027 |
36.9% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$194,271 |
$150,092 |
29.4% |
|
Long-Term Debt |
$4,845,962 |
$3,592,772 |
34.9% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$359,870 |
$343,888 |
4.6% |
|
Capital Expenditures |
$152,173 |
$135,898 |
12.0% |
|
Free Cash Flow |
$207,697 |
$207,990 |
(0.1%) |
Find out why free cash flow is a Fool's best friend.
Related Foolishness:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Steiner Leisure is a Rule Breakers pick, and Disney is a Stock Advisor selection. To see what other great companies have been recommended to Stock Advisor subscribers, take a free 30-day trial today.
Fool contributor Ryan Fuhrmann is long shares of Royal and Carnival but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned. The Fool has an ironclad disclosure policy.
